CMG7101 Construction Economics 
                            
                              Hours Per                    Hours per                   Weighted                    Weighted                   Weighted                  Credit Units 
                                  Week                     Semester                  Total Mark                  Exam Mark                   Continuous 
                                                                                                                                             Assessment 
                           LH  PH  TH                           CH                        WTM                         WEM                        WCM                            CU 
                            3         0         3                45                         100                          60                          40                           3 
                            
                           Course Description 
                           The course in geared at taking the student through estimating, economic resources, feasibility 
                           studies, cost benefit analysis; and supply and demand. 
                            
                           Objectives/Aims 
                           •     To enable the student understand estimation processes, inputs and outputs 
                           •     To help the student master the different ways of assessing the viability of construction 
                                 projects 
                           •     To provide an understanding of supply and demand in the construction context 
                            
                           Course Outline 
                           1.           Estimating                                                                                                                          [10 CH] 
                                        1.1  The Process 
                                        1.2  Inputs and Outputs of Estimating process 
                                        1.3  Methods of estimating 
                                        1.4  Cash flows 
                            
                           2.           Economic resources: identification and allocation                                                                                  [10 CH] 
                                        2.1  Economic resources 
                                        2.2  Reducible and irreducible factors 
                                        2.3  Priority analysis 
                                        2.4  Interest 
                                        2.5  Net Present Value, Equivalent Annual Cost, Payback Period, Profitability Index 
                                         
                           3.           Feasibility Studies                                                                                                               [10CH] 
                                        3.1  Need for feasibility studies 
                                        3.2  Parties and processes in feasibility studies 
                                        3.3  Feasibility study reports 
                            
                           4     Cost benefit analysis                                                                                                                    [5CH] 
                                        4.1  Cost determination 
                                        4.2  Benefits and disbenefits 
                                        4.3  Cost benefit ratio analysis 
                            
                           5     Supply and demand                                                                                                                        [10 CH] 
                                        5.1  Supply analysis 
                                        5.2  Demand analysis 
                                        5.3  Using demand and supply in construction 
                                        5.4  Elasticity of demand and supply in construction 
                                        5.5  Price Mechanism and allocation of resources 
                                        5.6  The role of government in construction demand and supply 
                            
                           Learning Outcomes 
          The course will help the student to: 
            •  Estimate for civil engineering projects 
            •  Carry out economic assessment and choose projects  
            •  Carry out feasibility studies and write reports 
            •  Analyse the supply and demand in construction 
           
          Method of Teaching/Delivery 
          The course will be conducted through lectures, tutorials and assignments. Basic lecture materials 
          provided by the Lecturer will be supplemented by individual reading effort by students. 
            
          Assessment Method 
          Continuous  assessment  through  assignments  and  tests,  and  final  written  examination.  The  final 
          examination carry 60% of the total mark., while continuous assessment will carry a total of 40%. 
           
          Reading/ Reference Materials 
           
                                                nd
          Shutt, R. C. (1989) Economics of the Construction Industry, 2  ed. Longman. 
                                                       th
          Harris, F. and McCaffer, R. (2001) Modern Construction Management, 5  ed., Blackwell 
          Science. 
                                                       st
          Brech, E. F. (1971) Construction Management in Principle and Practice, 1  ed., Longman. 
                                                      nd
          Thompson, P. A. (1981) Organisation and Economics of Construction, 2  ed., McGrawHill. 
                                                              st
          Sepulveda, J. A., Souder, W. E., and Gottried, B. S. (1984) Engineering Economics, 1  ed., 
          McGrawHill.